3 Minute Gold News

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New Song: Hawk and a Dove

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Gold is $1,109.50 U.S. per ounce.

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FROM THE CARIBOO GOLD RUSH TRAIL

Gold is on the move up as a refuge for money while the world freaks out.

China closed their stock market twice this week, and there were so many selling that the government feared a rolling snowball would turn into a landslide. (Where have we heard that metaphor before?). The global economy is tied together so the U.S. is now having a massive market sell off.

China has decided that as of tomorrow, Jan. 8, they’ll halt that “circuit breaker” and allow the market to free fall, thinking that when it gets low enough people (…cough…government) will buy in and bring it back up again.

Sounds like a free market!

Except they’re freeing it up in order to manipulate it. Those with power do whatever is necessary to keep it.

Or, in other words… whatever it takes until it breaks.

The IMF might smile if the Chinese stock market looks stable, and China certainly wants a grin on Christine Lagarde’s face with the yuan hopping into the IMF’s basket of currencies in their world money SDR.

So “whatever it takes” applies to China as well as Mario Draghi’s July 2012 eurozone speech. We’re all in this together. The world markets are intertwined and it matters what’s happening elsewhere.

They’re all off to the market in the dark.

There’s no free market clearing to light the way to fair prices and a stable economy. They’ve got a bull and a bear, and a hawk and a dove. How can you control it?

While the wizards have gold and a wand we’re being handed a “whatever it takes” elixer.

There’s a girl in love with a hawk and a dove
and she keeps them both I know
Off to the market in the dark
she takes them both in tow
Takes them both in tow boys
Takes them both in tow
And you’ll never see ’til she sets them free
where they want to go

There’s a boy who cares for a bull and a bear
and he keeps them both I know
Off to the market in the dark
he takes them both in tow
Takes them both in tow boys
Takes them both in tow
And you’ll never see ’til he sets them free
where they want to go

There’s a wizard fond of gold and a wand
and he he keeps them both I know
Off to the market in the dark
He takes them both in tow
Takes them both in tow boys
Takes them both in tow
And you’re going to see when it all breaks free
where it’s going to go

The Greek bank holiday and long lines to get a few euros for the day. Debt deals behind closed doors. The media telling us what opinions to have. China building islands in the South China Sea and claiming all the international waves. More dealing to come. More standing in line for those who owe. Who owes? There’s a long line of nations in debt and this is far from done.

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Preparing for the Fall live boutique album is available on iTunes — featuring Wag the Dog, Black Swan Dive, American Pie and Gods of the Copybook Headings.

The copybooks of the early 1900s gave us all the wisdom we need. The sayings that were copied are the truths, the gods, of our world. All the empires who followed the gods of the marketplace instead have fallen, and there’s terror and slaughter when the gods of the copybook headings return. The lyrics are by Rudyard Kipling. One of my gurus.

See the bankers wave their Wall Street wands and conjure piles of paper green. Naked short selling is like betting that your neighbour’s house will burn down. But in this scenario it happens to burn down. If the bankers win then we lose the whole world as we know it. I wrote this in 2009, with a lyric “A little grease (Greece) is floating out to sea, and little pigs (Portugal, Italy, Greece and Spain) are bobbing up and down, they’ll send a storm and we’ll see, when the tide goes out who’s naked on the beach“, and it’s coming on now. The world is changing as we know it.

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Nothing on this site is intended as individual investment advice. We’re all watching which way the wind is blowing.